The Kenya Pipeline Company (KPC) is ready to construct a cooking gasoline storage facility on the Kenya Petroleum Refineries Ltd (KPRL). The transfer is expected to ease the importation of Liquefied Petroleum Gas (LPG) into the country, rising competitors among oil entrepreneurs and, in turn, bringing down the worth of the fuel.
The facility can be anticipated to enable players to import cooking gas via the Open Tender System (OTS), a fuel importation mechanism supervised by the Petroleum Ministry that contracts oil corporations with the lowest bids to import petroleum products on behalf of the industry. The bulk storage facility, to be owned by the government, might additionally usher in an era of value controls for cooking fuel.
เพรสเชอร์เกจ has began the search for an organization that it stated would provide engineering designs for the proposed facility, which will inform the process of choosing a contractor for the development works.
The advisor may also undertake environmental influence assessment as nicely as LPG demand within the Kenyan market. “The proposed new facility is to be designed as a ‘common user’ facility for allotting LPG to interested parties through rail siding, truck loading, and bottling amenities,” mentioned KPC in tender documents.
READ: Kenya leads East Africa in electrical energy entry

“KPC is desirous of implementing storage capability of no less than 25,000 metric tonnes within the medium time period and 50,000 metric tonnes in the long run subject to affirmation after undertaking the LPG demand research.” The facility at KPRL, which KPC runs through a lease, will be linked to the second Kipevu Oil Terminal (KOT 2), which is nearing completion.
In 2005, a research jointly carried out by the Ministry of Energy and The World Bank recommended that LPG storage facilities with complete capacities of 8700 tonnes be arrange within the three cities including Nairobi, Mombasa and Kisumu, and the two major towns of Eldoret and Nakuru.
Meanwhile, KPC is seeking a transaction adviser to assist it conclude the takeover of the defunct KPRL as it seeks to spice up its storage capacity. KPRL was positioned underneath the administration of KPC in 2017 as a storage facility for imported crude oil after Indian investor Essar didn’t revive the country’s solely oil refinery.
KPRL has forty five tanks with a complete storage capacity of 484 million litres. About 254 million litres is reserved for refined merchandise whereas 233 million litres is for crude oil.